The government has today announced a second bank bailout package which it hopes will boost lending to businesses and individuals. Commenting on the plan, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"Since the original bank bailout failed to unblock the paralysis in the credit markets, it was clearly necessary for the government to take further measures. But, the dangers to the UK’s public finances are huge.
“If the new measures fail to work the government must be prepared, however reluctantly, to do the lending job directly."